Finance Minister Cassiel Ato Forson has clarified that Ghana’s planned engagement with the International Monetary Fund (IMF) under a Policy Coordination Instrument (PCI) is not another bailout programme.
According to him, the engagement is a technical reform framework aimed at strengthening economic management and boosting investor confidence.
The announcement follows Ghana’s successful completion of its Extended Credit Facility (ECF) programme with the IMF, which helped restore macroeconomic stability and rebuild confidence in the economy.
Also read: Nigeria to become world’s 5th richest country in 50 years – ECOWAS Commissioner
According to Dr. Forson, the Policy Coordination Instrument is a non-financing arrangement that supports countries implementing economic reforms. Unlike conventional IMF programmes, the PCI does not provide direct financial assistance.
“The PCI is a form of technical assistance engagement with the IMF. It is a non-financing instrument designed to help countries implement economic reforms and signal commitment to policies that financial markets will be comfortable with,” Dr. Forson said.
The Finance Minister explained that the PCI is expected to unlock additional financing from private investors and development partners by reinforcing confidence in Ghana’s economic outlook.
He noted that the arrangement will strengthen economic reforms and policy implementation, improve market confidence in Ghana’s economy, and unlock financing from private investors and development partners.
According to Dr. Forson, it will also support Ghana’s efforts to attain investment-grade status, lower sovereign and private sector borrowing costs, attract long-term institutional investors, increase foreign direct investment (FDI), and provide cheaper financing for critical infrastructure development and private sector growth.
Dr. Forson said achieving investment-grade status remains a top priority for the government because it would significantly reduce borrowing costs and expand access to global capital.
This, he said, would enable Ghana to secure more affordable financing for critical infrastructure projects, stimulate private sector growth, and create sustainable employment opportunities.
“Ultimately, this engagement will support the Government of Ghana’s efforts to accelerate sustainable development, create jobs and raise living standards for all Ghanaians,” he stated.
The Finance Minister reiterated that President John Dramani Mahama and his administration remain fully committed to good governance, fiscal discipline, and prudent economic management.
He said the government is focused on creating an attractive environment for both domestic and international investors as part of its broader strategy to sustain economic recovery and long-term growth.